Core Insights - The Central Board of Direct Taxes (CBDT) has announced that from April 1, 2027, the Capital Gains Account Scheme (CGAS) will allow online closure of accounts, streamlining the process for property sellers who need to withdraw funds due to not finding a new property to invest in [11][12] - The new online mechanism aims to eliminate the previous requirement for physical applications, which was time-consuming and often complicated by location issues [2][11] - The CBDT's notification also includes provisions for funding CGAS accounts through various electronic payment methods, enhancing convenience for taxpayers [5][6] Capital Gains Account Scheme (CGAS) Overview - The CGAS allows property sellers to deposit capital gains from property sales to defer tax liabilities when they are unable to reinvest in new properties within the specified time frame [12] - Taxpayers must deposit any unutilized capital gains into the CGAS before the due date for filing their income tax return under Section 139(1) [9][10] - If the deposited amount is not fully utilized for purchasing or constructing a new property within three years, it becomes taxable [10] Tax Filing and Exemption Claims - Taxpayers claiming benefits under Section 54 must select the appropriate Income Tax Return (ITR) form based on their income sources, with ITR-2 or ITR-3 being applicable for those with capital gains from residential property [8][10] - To claim exemptions, taxpayers need to provide specific details such as the date of transfer of the original asset, amount deposited in CGAS, and other relevant information in Schedule CG of their ITR [10]

Group 1 - The surviving spouse of a deceased co-owner of a property receives a step-up in basis to the market value at the time of death, while also being eligible for a $250,000 capital gains exemption upon selling the property [1][4][6] - A step-up in basis resets the tax basis of an inherited asset to its market value at the time of the original owner's death, which can significantly reduce taxable gains for heirs [4][5] - The capital gains tax exemption for the sale of a primary residence can be up to $500,000, provided the owner has lived in the home for at least two of the previous five years [7][8] Group 2 - The basis of an asset is the amount paid for it, which is crucial for calculating taxable gains when the asset is sold [3] - The Section 121 exclusion allows homeowners to reduce or avoid capital gains tax on the sale of their primary residence, subject to certain conditions [7][8]